29 Apr 2015
USD/JPY erases gains after weak US GDP
FXStreet (Córdoba) - USD/JPY fell sharply and dipped below 119.00 after the release of the Q1 GDP estimate by the US Government. US gross domestic product rose by a mere 0.2% annualized rate in the first quarter, according to the first estimate, well below the 1.0% of consensus and the 2.2% growth scored the previous quarter.
USD/JPY dropped nearly half a cent toward a low of 118.88 as the knee-jerk reaction, erasing completely intraday gains. The pair managed to bounce slightly to currently trade at the 119.00 area, still 0.13% above its opening price.
The dollar was trading mixed before the GDP figures. USD/JPY had managed to advance during the European session, underpinned by US yields ahead of the FOMC statement and it reached a daily high of 119.35.
USD/JPY levels to watch
In terms of technical levels, USD/JPY could find immediate resistances at 119.35 (daily high), 119.51 (21-day SMA) and 119.65 (Apr 24 high). On the other hand, supports are seen at the 118.75 area (Apr 29, 28 & 27 lows), 118.52 (Apr 20 low) and 118.32 (Mar 26 low).
USD/JPY dropped nearly half a cent toward a low of 118.88 as the knee-jerk reaction, erasing completely intraday gains. The pair managed to bounce slightly to currently trade at the 119.00 area, still 0.13% above its opening price.
The dollar was trading mixed before the GDP figures. USD/JPY had managed to advance during the European session, underpinned by US yields ahead of the FOMC statement and it reached a daily high of 119.35.
USD/JPY levels to watch
In terms of technical levels, USD/JPY could find immediate resistances at 119.35 (daily high), 119.51 (21-day SMA) and 119.65 (Apr 24 high). On the other hand, supports are seen at the 118.75 area (Apr 29, 28 & 27 lows), 118.52 (Apr 20 low) and 118.32 (Mar 26 low).